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Glossary · Compensation

Equity compensation

Equity compensation is pay in the form of ownership — shares, stock options, or similar — giving an employee a stake in the company's future value rather than only cash today.

Common at startups and scale-ups, where equity can be the largest part of a senior package. Its real value depends on the company's growth and the terms — vesting, strike price, and dilution.

Placed, not posted.

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